UK's BP has entered into agreements with ConocoPhillips that will significantly increase its holding in the Clair field while also selling its non-operating interest in the Kuparuk and satellite oilfields in Alaska.
As part of the deal BP will buy from ConocoPhillips a 16.5 per cent interest in the BP-operated Clair field, west of Shetland in the UK, buying a ConocoPhillips subsidiary that will hold this interest in the field. As a result, BP will hold a 45.1 perc ent interest in Clair and ConocoPhillips will retain a 7.5 per cent interest.
Separately BP has entered into agreements to sell to ConocoPhillips BP’s entire 39.2 per cent interest in the Greater Kuparuk Area on the North Slope of Alaska as well as BP’s holding in the Kuparuk Transportation Company.
“This is a further step in focusing our portfolio around core assets and developments which have the potential for significant growth. Clair is a key advantaged oilfield for our North Sea business, a giant resource whose second phase is about to begin production and which holds great potential for future developments,” said BP Upstream chief executive Bernard Looney.
He added: "“In Alaska, this transaction will increase our focus on managing our deep resource base at the massive Prudhoe Bay oilfield and help enable a more competitive and sustainable business for BP.”
BP did not disclose the amount of the transaction but did say it expected the deal to be cash neutral for BP and ConocoPhillips.
The field is operated by BP which currently holds a 28.6 per cent interest. Production from Clair’s first phase of development began in 2005 and the field produced an average of 21,000 barrels of oil equivalent a day (boed) in 2017. A major second development phase, Clair Ridge, is expected to start production later this year with production capacity of 120,000 boed. Appraisal has also identified potential for future stages of development of Clair.